Families are putting vacation on hold, due to rising gas prices. Up from last year, families spent an average of $369 at the pump last month, compared to $201 in April of 2009. This increase in gas means that money that is spent on gas is higher than cars, clothes or recreation. The average gas price in the nation is $3.81 per gallon.
Wal-mart is blaming gas prices on lowered sales and Target said their clothing sales are down due to the added expense of gas. James Hamilton is an economics professor at the University of California in San Diego studying gas prices. He stated, “Every 50-cent jump in the cost of gasoline takes $70 billion out of the U.S. economy over the course of a year,” which equals to about half of one percent of the GDP.
The tourism industry is bracing itself for a less lucrative summer, and AAA
is reporting that families will be spending less on vacations and travel due to rising costs of gas.